Macquarie share price lifts as CEO spruiks ‘very good inflation protection’

A person sitting at a desk smiling and looking at a computer.A person sitting at a desk smiling and looking at a computer.

The Macquarie Group Ltd (ASX: MQG) share price is 2.86% higher today at $178.70 at the time of writing.

Australia’s ‘fifth big four’ bank held its annual general meeting and provided a Q1 FY23 update today.

As my Fool colleague James reported earlier, Macquarie said favourable trading conditions had resulted in a lift to net profit contributions above the prior corresponding period of Q1 FY22.

The highlight was its annuity-style businesses, which delivered a “significantly” stronger result on the pcp.

What did the Macquarie CEO say?

According to reporting in The Australian, Macquarie CEO Shemara Wikramanayake said rising interest rates should not hit infrastructure assets as hard as other investment asset classes.

She said infrastructure assets have historically performed better because operators can pass on the cost of rising rates to consumers.

In a media conference, Wikramanayake said:

Some of the reasoning behind that is these assets have very good inflation protection in them, whether they’re regulated utilities or they are toll roads.

Typically they’re able to capture the inflation aspects in the revenue line.

Despite discount rates going up in a rising rate environment and all asset prices being brought down, infrastructure-like assets have proven more resilient.

Macquarie share price snapshot

Like most ASX shares, Macquarie has declined in value over the year to date due to the market sell-off.

The Macquarie share price is down 13% since the opening bell on 4 January.

The S&P/ASX 200 Index (ASX: XJO) is down 8%. The S&P/ASX 200 Financials Index (ASX: XFJ) is down 4%.

The post Macquarie share price lifts as CEO spruiks ‘very good inflation protection’ appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Bronwyn Allen has positions in Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/bDJ1dFa

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s